Correct procedure for deducting import VAT

HMRC has concluded its review of the correct treatment for deductions of import VAT paid by taxable persons that are not the owners of the relevant goods. It has confirmed that the policy outlined in Revenue and Customs Brief 2/2019 it is correct - the owner whose details should be shown on box 8 of the import declaration is entitled to reclaim VAT paid on imports under current UK legislation. It allowed a transitional period for businesses to put in place correct procedures up to 15 July 2019.

In RCB 15/2020 HMRC provides information for non-owners who have reclaimed import VAT on goods imported into the UK and for advisers dealing with businesses importing goods to the UK. The brief covers reclaiming the correct input VAT for agents customs warehousing goods temporarily imported for repairs goods imported...